Focus Report Copenhagen - Colliers Denmark 2025

RESIDENTIAL - COLLIERS FOCUS REPORT COPENHAGEN 2025

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New focus: From rental to divestment

INDUSTRIAL AND LOGISTICS RETAIL RESIDENTIAL OFFICE

7,574 resi units completed in 2024 (Q1-Q4)

Rental properties make up a significant part of the housing market in Copenhagen, and in 2024, around 84% of newly built homes in Greater Copenhagen were rental properties. This contrasts with several studies that show a growing preference for owner-occupied housing among home seekers, and there is an increased political focus on getting more owner-occupied housing in the city. To promote a more balanced housing market, politicians are considering amending the Danish Planning Act to allow local plans to include a requirement for owner-occupied housing. However, a change to the Planning Act is unlikely to lead to a significant increase in the number of owner-occupied homes. This is because financing conditions are a significant challenge for developers when it comes to owner-occupied housing projects, with pre-sale requirements in particular hampering the development of new projects. However, politicians can take heart in the fact that more investors are becoming aware of divestment strategies. Recent years’ sharp price increases for owner-occupied homes in Copenhagen – which have outpaced the price devel opment of rental properties – have led several players to consider buying rental properties for successive divestment as tenants move out. In 2024, there were several examples of transactions where the buyer had an upfront divestment strategy, while additional investors are ready to apply the same strategy going forward. At the same time, there are cases where existing owners of residential rental prop erties are changing their strategy from rental to divestment. Because of this trend, we expect to see an increased supply of owner-occupied housing in Copenhagen, contributing to more diverse residential areas, in line with political ambitions. However, there are certain risks associated with a divestment strategy. For it to work in practice, there are typically a number of criteria in the market in question that must be met. The Copenhagen residential property market is particu larly favourable. First and foremost, a liquid owner-occupied housing market is required that can absorb the homes. The homes must have an attractive micro-location that appeals to the owner-occupied segment. Moreover, it is advantageous to

472,025 sq m resi completions 2024 (Q1-Q4)

79 sq m Average residential unit size

84.1% Tenant share

5% Average residential vacancy rate

Note: The three bottom figures denote average data on Greater Copenhagen multi-storey housing. Source: Statistics Denmark, Colliers